---
kind: "section"
citation: "7 U.S.C. § 1929b"
title: "7"
title_heading: "Agriculture"
number: "1929b"
heading: "Purchase of guaranteed portions of loans; terms and conditions; exercise of authorities"
release: "119-102"
url: "https://uscodex.org/usc/7/1929b"
units:
  - "Chapter 50 — Agricultural Credit"
  - "Subchapter I — Real Estate Loans"
---

# §1929b. Purchase of guaranteed portions of loans; terms and conditions; exercise of authorities


The Secretary may purchase, on such terms and conditions as the Secretary deems appropriate, the guaranteed portion of any loan guaranteed under this chapter: Provided, That the Secretary may not pay for any such guaranteed portion of a loan in excess of an amount equal to the unpaid principal balance and accrued interest on the guaranteed portion of the loan. The Secretary may use for such purchases [funds](/usc/7/4531.md?p=5) from the [Rural](/usc/7/1991.md?p=a-13-A) Development Insurance [Fund](/usc/7/4531.md?p=5) with respect to [rural](/usc/7/1991.md?p=a-13-A) development loans as defined in [section 1929a(a) of this title](/usc/7/1929a.md?p=a) and [funds](/usc/7/4531.md?p=5) from the Agricultural Credit Insurance [Fund](/usc/7/4531.md?p=5) with respect to all other loans under this chapter. This [authority](/usc/7/2009aa.md?p=1) may be exercised only if the Secretary determines that an adequate secondary market is not available in the private sector.


## Source credit

(Pub. L. 87–128, title III, § 309B, as added Pub. L. 95–334, title I, § 111, Aug. 4, 1978, 92 Stat. 424.)

## Notes

### Editorial Notes

### References in Text

This chapter, referred to in text, was in the original “this title”, meaning title III of Pub. L. 87–128, Aug. 8, 1961, 75 Stat. 307, known as the Consolidated Farm and Rural Development Act, which is classified principally to this chapter. For complete classification of title III to the Code, see Short Title note set out under section 1921 of this title and Tables.